The World Bank said late Thursday Iran is more than six months overdue on loan repayments, making it only the second nation delinquent on development finance owed to the Washington-based institution.

The default could deal another blow to Iran’s economy–already squeezed by international sanctions–by potentially raising another major barrier to financing and pushing up borrowing costs for the country.

This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com.